Pos Malaysia goes all-in on AWS to drive business transformation

While postal services may not be widely used today, they play a vital role in delivering documents, letters, pand parcels to customers. Despite being labelled “snail mail”, things are beginning to change for postal services thanks to the rapid adoption of technology.

In Malaysia, postal services still play an important role for many. There is still a significant demand for their services, especially in reaching out to those in remote locations – something that a national postal services provider can do at a much cheaper cost.

Pos Malaysia Berhad, the national postal and courier service provider is now going all-in on AWS to drive the company’s ambitious transformation plan to diversify its products and services. As part of this business transformation, Pos Malaysia is closing its on-premises data centers and migrating the vast majority of its information technology (IT) infrastructure to the world’s leading cloud by 2023.

By going all-in on AWS, Pos Malaysia will make transactions smoother with new digital, customer-centric solutions while reducing IT costs by 50%. These solutions will enable the 200-year-old organization, which has Malaysia’s most extensive last-mile reach delivering to more than 10 million addresses and a network of more than 3,500 retail touch points, to better serve customers with seamless deliveries.

With e-commerce growing by 24% between 2020 and 2021, the industry required courier and logistics companies to scale to meet the demand for deliveries and to offer greater reliability and convenience for customers. To deliver improved postal and logistics services, Pos Malaysia migrated 60 critical applications—including parcel tracking, point-of-sale retail, SAP, human resources, supply chain, and mail tracking—to AWS in June 2022, and will migrate the remaining applications by 2023.

Pos Malaysia will use Amazon Elastic Compute Cloud (Amazon EC2), which provides secure, resizable compute capacity in the cloud, to help scale its workloads. This will enable Pos Malaysia to provide better support to its customers through seamless deliveries during peak periods like promotional sales events and festive seasons.

On AWS, Pos Malaysia will build a centralized data repository for an integrated data platform, which will allow them to better understand customer demands, find delivery efficiencies, and improve operations across the country. For example, using Amazon SageMaker, a service to build, train, and deploy machine learning models for virtually any use case, Pos Malaysia will build data-driven models that predict high demand for delivery services and support Pos Malaysia with deploying resources like vehicles and staff to ensure smooth deliveries.

According to Sumesh Rahavendra, the Group Chief Digital & Transformation Officer at Pos Malaysia, with AWS, Pos Malaysia has been able to navigate its business transformation to diversify beyond the traditional provision of mail and parcel delivery. As such, Rahavendra pointed out that Pos Malaysia can now offer retail, logistics, and other innovative products and services to serve our customers better and make operations more streamlined and efficient.

“Our all-in migration to AWS enables us to focus on our core operations, improve productivity, and drive profitability while delivering a great customer experience. Using AWS’s advanced cloud capabilities, we can better understand our customers’ needs, businesses, and operations, improving the overall service experience with impactful new digital services that solve customer challenges,” added Rahavendra.

For Eric Conrad, regional managing director of Worldwide Public Sector, ASEAN at AWS, Pos Malaysia’s digital transformation with AWS is a great example of how a traditional last-mile logistics business can simplify, modernize, innovate, and scale.

“Using AWS, Pos Malaysia can capture growth opportunities in e-commerce as demand for online shopping accelerated across Southeast Asia during the pandemic. Pos Malaysia is delivering goods into the hands of customers in a cost-effective, efficient, and agile manner, especially during peak periods with high parcel volumes. We look forward to supporting Pos Malaysia’s growth and mission to enable more Malaysians to enjoy seamless e-commerce and delivery experiences,” stated Conrad.

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